AKERMAN, Anders; FORSLID, Rikard; Toshihiro, OKUBO - Research Institute of Economy, Trade and Industry (RIETI) - 2013
This paper models the market entry cost of exporters as dependent on the size of the export market as well as on sector specific factors. We introduce these features in a Melitz trade model with heterogeneous firms. The predictions of our model are tested using Swedish and Japanese firm level...